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Sharpe Group’s Charitable Giving Tax Service (CGTS) is a comprehensive, thoroughly indexed online reference library to help you find answers to tax-related philanthropy questions. For decades, it has been a trusted resource of gift planning advisors, including attorneys, accountants, nonprofit executives and charitable gift planning staff.

CGTS is available exclusively from Sharpe Group and includes sample gift documents, trust forms and gift deduction worksheets and tables.

Sections are cited to the Internal Revenue Code and Regulations, plus court cases and rulings—all searchable by keywords or phrases.

For more information, visit www.SHARPEnet.com/charitable-giving-tax-service. Or contact us at 901.680.5300 or info@SHARPEnet.com.

Charitable Giving Tax Service

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In some parts of the country, governors and locally elected mayors are developing phased-in programs as “safe-at-home” orders are beginning to expire. As it appears, these elected officials are allowing their local businesses and nonprofit organizations to begin to return to, what many are calling, “the new normal.”

At Sharpe Group, we have been inspired to develop new, creative approaches to help our clients maintain personal contacts with donors while observing safe-at-home practices and social distancing. We are asking ourselves, “How will current and/or deferred major gift donors’ behavior change as a result the pandemic?”

During the past few months, I have observed how technology has taken the lead in providing alternatives to the face-to-face meetings so many of us are accustomed to. Being a baby boomer, I had few prior virtual meeting experiences. Now I can say I have been in more Zoom meetings and attended more virtual conferences in the last three months than I have in my entire life!

Because older donors have been the most vulnerable to COVID-19, those over age 60, and especially those with diminished immune systems, may be reluctant to have face-to-face meetings or even small group meetings, such as legacy society events, even after the pandemic is under control.

So, what are some ways we believe nonprofits can modify past practices in the “new normal”?

Communicate with your donors differently.The frequency and form of donor communications should be consistent and varied according to audience. Perhaps most importantly, the message should resonate with the reader. Sending the same publication to a large number of donors based on a single criterion, such as age, will not generate the responses desired.

The donor constituency needs to be refined by more critical attributes. This can be accomplished by processing your donor data history through machine learning software platforms.

Earlier this year, Sharpe Group invested in artificial intelligence (AI) capabilities to enable our clients to make communication decisions based on AI results. We are calling this service “Augmented Intelligence.”

AI results produce more targeted messaging with a call to action that will resonate with the greatest number of a smaller group of donors. We use Augmented Intelligence to perceive more similar segments of donors to increase responses from each group.

Our editors, who interact continually with nonprofits with diverse missions and donor constituencies, work with our experienced graphic designers to produce communication pieces that will resonate with each group of donors to create a blend of printed and electronic publications. Some are in the traditional newsletter style, some in the postcard format and some in an origami style that has to be unfolded for the full message.

We have found the format, style and media must be varied so the donor doesn’t hit the “delete” key or make an immediate deposit to “File 13,” the waste basket.

Maximize your staff.The importance of recruiting, training, empowering and evaluating fundraising personnel and their performance metrics will be even more crucial in the days ahead. Sharpe Group has developed a service to provide better position benchmarks for fundraising personnel.

This service evaluates the strength of each individual in their position. Based on their strengths and needs, a training plan is developed featuring modules and videos and can be tracked in a dashboard by the development VP.

This service has been designed to assist management in evaluating personnel effectively, identifying strengths and training needs and targeting solutions to improve the effectiveness of your development team. It can also identify areas, such as fundraising strategies, that would benefit from Sharpe’s consulting expertise.

The key to successfully maximizing your staff is to build a team of individuals with the strength, knowledge and experience to carry out your mission. Equally important is your staff’s ability to obtain gifts and gift commitments.

For those nonprofits operating with reduced staff, the workload on those remaining can become overwhelming. Sharpe Group can assist in this area and help you maintain necessary donor contacts. For more information about this service, contact us at www.SHARPEnet.com/about/contact.

Overall, we have witnessed how this pandemic has shown the resiliency of our citizens and has demonstrated how caring our culture is. At Sharpe Group, we are honored to serve those, like you, who serve society.

Kind regards,

Jim RossChairman, CEO

AFTER COVID-19 Will There Be a “New Normal” for Donors?

Lessons We’ve Learned from Planned Giving Donors on Managing Times of Crisis

As people and businesses across the country adjust to the difficult circumstances of the ongoing coronavirus pandemic, nonprofits are balancing addressing the needs of their donors while trying to ensure the financial well-being of their organization. Five Sharpe Group clients share their experiences and lessons learned while fundraising in unprecedented times.

Donors continue to display positivity and gratitude.

“Our planned giving donors have been incredibly positive, especially about St. Bonaventure. Some donors have been through tough times like the Depression, World War II and other events throughout their lifetime. They remind us that we will be a stronger institution coming out of this.” —Robert F. Keenan, Associate Director of Planned Giving, St. Bonaventure University

“I've been really impressed with our donors’ responses. Not only are they appreciative of our calling to see how they are doing, they have reached out to check on our staff, faculty and, of course, our students. They have been incredibly thoughtful.” —Meg Riner, Senior Director of Development, Bridgewater College

“Our donors have expressed an immense amount of gratitude that we are reaching out and that we treat them as individuals—not just addresses.” —Sean Twomey, Director of Planned Giving, The Wilderness Society

Current challenges allow for new opportunities.

“Our mission is to share the experience of Mount Vernon with the public. However, being closed to our supporters and legacy donors is not so distant from reality for us. Most planned giving donors have a cherished memory of visiting Mount Vernon at some point in their lifetime but are unable to interact with Mount Vernon regularly. The pandemic has driven our organization to invest in and provide opportunities for people to enjoy Mount Vernon experiences from the comfort of their own home. An 80-year-old in Kansas who has a fond memory of their seventh-grade field trip to Mount Vernon but has not been able to return can now engage in virtual programs. Supporters can listen to book talks and podcasts, take a virtual tour or even have tea with Martha Washington right in their living room. I think this will enhance our offerings and ability to fulfill our mission, not only during this crisis but moving forward.” —Carolina Camargo, Senior Director of Development, George Washington’s Mount Vernon

This is an opportunity to connect through a commitment to our mission.

“One of St. Bonaventure University’s older alumni, a microbiologist who will be 82 this year, reached out to ask how members of the senior class are doing. He felt bad about their final semester being interrupted. While the pandemic keeps us physically distant for now, the bonds of Bonaventure keep us connected.” —Robert F. Keenan

“Even though there is massive uncertainty surrounding this crisis, many nonprofits are doing a great job of fostering relationships, building connections to their donors and showing how much charitable giving has the ability to enrich someone’s life. That is what matters to donors and influences giving.” —Sean Twomey

There’s a continued interest in planned giving.

“We’ve uncovered some planned giving prospects through donor outreach. People have shared that they’ve included Bridgewater College in their estate plans, and we’ve seen an increase in people updating their plans in support of the charities that matter to them.” —Meg Riner

“It’s fairly reasonable to say that major gift fundraising could be a little slower in the coming months and maybe years. Deferred giving plans may be a better option for many donors. As fundraisers, we are going to have to be creative in offering blended gift opportunities that satisfy our donors’ needs and the organization’s need for immediate gifts.” —Garry Sloan, Director of Individual Philanthropy, Lake Forest Academy

Editor’s note: We want to know how all our nonprofit partners are doing. Send us a note to info@SHARPEnet.com with “Our COVID experience” in the subject line, and we’ll share your experiences and lessons learned with others on our blog: www.SHARPEnet.com/blog. ■

Robert F. Keenan

Meg Riner

Sean Twomey

Carolina Camargo

Garry Sloan

Supporters with bequest intentions often can be motivated to accelerate their philanthropy during their lifetime. The donor enjoys seeing a personal vision being fulfilled, and the institution showcases its abilities as a good steward of current and future gifts. Ordinarily, connecting a donor’s passion that aligns, at least partially, with a charity should produce a mutually satisfying relationship. Let’s examine a real-life example of such an alignment.

A 1965 graduate of a nationally eminent law school, attorney Lance J. Johnson had a passion for developing the jurisprudence on children and their legal rights. The law school is known as one of the leading law schools in the United States and home to an interdisciplinary Child Advocacy Law Clinic, so it would seem a plausible fit for a donor to raise the theoretical underpinnings of legal rights for children.

Mr. Johnson contributed $150,000 to create a fund supporting a biennial workshop bearing his name about children and the law. However, he felt these workshops were hosted only sporadically. His requests to law school professors for an accounting were directed to the internal legal counsel. He balked at the school’s request to travel from his Minnesota home to Ann Arbor to resolve the dispute about whether his donation was properly spent. The school, through its spokesperson, claimed confidence the commitment was honored and funds were used appropriately.

Unsatisfied, Mr. Johnson advised the school he was removing them from a $2M revocable bequest intention. He also played a card every charity should dread.

He asked the attorney general for the state of Michigan to “closely examine what the law school has done with my donated funds, as well as those of any other donor who thinks they might have been misled by the law school. The School (misled) me about how they would spend my more than $150,000 donation. ... I have no other choice but to revoke the additional $2 million gift that was to be paid upon my passing.”

Without having access to any gift agreements between the parties, I wonder, could this situation have been avoided? When fundraisers speak of “complex gifts,” many are referring to the nature of the assets. Perhaps it is

real estate, privately held equity or partnership interest. But at times the deliverable can be complex.

Were Mr. Johnson a legal client seeking counsel before making the gift, I would try to discern how often the workshop is to be held, an acceptable format for it and agreement with the institution on deliverables. Is it publishing in peer-reviewed journals? A minimum level of Social Science Research Network citations? What should be included in the annual report on expenditures for the project?

What, if anything, can be learned by both charities and potential donors about this case?

1. Even a gift that matches the mission of the recipient will be deemed unsuccessful to a donor if the donor feels unsatisfied. The gift agreement should define “what success looks like” to the donor. The more complex the deliverable means the greater the risk of donor unfulfillment especially if there is the creation or expansion of an existing program.

2. A regular annual report on expenditures is preferable to asking lawyers to intervene. Charities should regard it as much for their peace of mind as well as that of a donor.

3. A charity should assume a disgruntled donor will reach out to the state attorney general and may commence legal proceedings. Rather than incur the negative publicity of a donor alleging poor stewardship, there should be granted to the charity a “right to cure any defects of administration and stewardship.”

For more background regarding this dispute, see https://www.mlive.com/news/ann-arbor/2020/02/university-of-michigan-law-school-alum-revokes-planned-2-million-bequest.html.

For an excellent overview in creating a well-designed gift agreement, see the article in the October 2019 issue of Trusts & Estates by Warren K. Racusin on Pages 40-44.

In part two of this article, posted on our blog, I will examine how the stewardship of seemingly routine gifts to endow scholarships and professorships can go horribly wrong even when the donor is sophisticated, very grateful and involved at the highest level with fundraising experts. To sign up for our blog, visit www.SHARPEnet.com/blog. ■

The Value of Stewardship, Part 1 of 2: FIRST, DO NO HARM By Christopher P. Woehrle

Christopher P. Woehrle is Professor and Chair of the Tax & Estate Planning Department at the College for Financial Planning in Centennial, Colorado.

We are seeing the evidence with 20/20 hindsight that perhaps we did not plan well for a pandemic. Personally, I wish I had an extra bottle of hand sanitizer or wipes; I’m so thankful that my wife makes it a habit to purchase extra cleaning supplies for our storage room. Planning for future unknowns is a truth that translates to our companies as well.

Over the past few weeks, I’ve consulted with a large company (more than 200,000 employees) that was largely unprepared for a “work from home” solution.

Hindsight vision or “Monday Morning Quarterbacking” is all fine and well, but what is your nonprofit supposed to do now? This is the question reigning the day in nearly all my conversations with nonprofit colleagues. Here’s what we suggest:

Consult with the experts.Sound too simple? Maybe so, but the thoughtful nonprofits are doing this right now.

Nonprofits engaging each otherI participated on a conference call in early March with 20 environmental nonprofit executives who shared their issues, challenges and possible solutions. The most profound moment of that call came at the end, when one of the participants suggested this same group meet every two weeks to do the same thing. The first call was filled with questions on how to handle work-from-home solutions. The second meeting, two weeks later, continued with a thorough discussion on medium-term decisions for the good of their respective organizations.

Nonprofits engaging development/ fundraising expertsPlanning for your fundraising future is likely more critical than the short-term solutions provided by the CARES Act. Having a clear 20/20 hindsight vision is essential to build your long-term fundraising plans.

USING 20/20 HINDSIGHT FOR FUTURE PLANNING: WHAT USING 20/20 HINDSIGHT FOR FUTURE PLANNING: WHAT NONPROFITS SHOULD BE DOING NOW, PART 1 OF 2NONPROFITS SHOULD BE DOING NOW, PART 1 OF 2

I have listened to many nonprofit executives speak to how difficult it may be to begin budgeting for next year. One voice in that conversation was particularly helpful: “We are really beginning to take a hard look at the entire budgeting approach and whether the old budgeting style is appropriate for our organization.” I never thought I’d hear those words come out of a CPA’s mouth!

The same suggestion can be given to development professionals. Is now perhaps the right time to rethink your organization’s approach to its investment in fundraising?

Major and event-based givingEconomic downturns usually have a large impact on major and event-based giving. Often, these impacts are felt during the budget process, and, unfortunately, they can directly impact a nonprofit’s mission. Communication and exercising empathy with your donors and their families is crucial during this time. Now may not be the time to discuss their pledges. Instead, ask them how they are doing. I recently began a conversation with a nonprofit executive by assuring her that I was not making a sales call; rather, I simply wanted to see how she and her family were coping.

In your planning, I recommend looking at the long term so your organization can help your donors create charitable giving solutions that align with their personal situations and support their passion for your mission. This may be in the form of deferring gifts (until the market returns), or it could be in suggesting “blended gifts” which incorporate both major and planned giving in a way that benefits both parties.

There are no simple or easy solutions to the current environment. Part two of this article, posted on our blog, will dive into planned giving solutions and information on how nonprofits can engage banking experts. To sign up for our blog, visit www.SHARPEnet.com/blog. ■

By Bob Mims, Sharpe Group CFO

What we have learned about planning for future crises

www.SHARPEnet.com

Using 20/20 Hindsight for Future Planning: What Nonprofits Should be Doing Now, Part 1

The Value of Stewardship, Part 1: First Do No Harm

Lessons We’ve Learned From Planned Giving Donors on Managing Times of Crisis

After COVID-19 Will There Be a “New Normal” for Donors?

Help Your Donors Understand WHAT THE CARES ACT MEANS FOR THEMIn response to the health and financial crisis caused by the coronavirus global pandemic, the  Coronavirus Aid, Relief, and Economic Security (CARES) Act  has been enacted. The law presents a plan for the government to aid Americans and businesses during these uncertain times.

To help communicate the charitable giving provisions of this legislation with your donors, Sharpe Group has created a new brochure, The CARES Act: Good News When We Need It Most in an easy-to-read format. This brochure makes an ideal and welcome message to all current and prospective donors and can also serve to educate your board, volunteers and staff.

Use our online platform to personalize and order printed brochures targeted to your donors. Choose an accent color and cover image from the provided selections to create a brochure that fits your organization. Or upload your own image and your full-color logo to personalize the front and back of your brochure.

Visit us online at SHARPEnet.com/cares-act-communication or contact us at 901.680.5300 or info@SHARPEnet.com to learn more. ■

Learn more at SHARPEnet.com or contact us. Sharpe Group consultants know that every organization is different, so every project begins with a conversation about your needs.

901.680.5300info@SHARPEnet.com | www.SHARPEnet.com

A client service publication published since 1968 by Sharpe Group, with offices in Atlanta, Chicago, Memphis, Nashville, San Francisco and Washington. 901.680.5300. Email info@SHARPEnet.com or visit our website at www.SHARPEnet.com. The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details. © Copyright 2020 by Sharpe Group. All Rights Reserved.

Learn more about us at SHARPEnet.com, or reach out to us. We know that every organization is unique. Every project begins with a conversation about your goals.

info@SHARPEnet.com

901.680.5300

Personalized GIFT PLANNING BROCHURESSharpe Group offers an efficient and appealing way for you to personalize your gift

planning brochures in our online platform. Choose an accent color and cover image from the provided selections to create a brochure that aligns with your fundraising strategy and fits your organization. You can also upload your own image and your full-color logo to further personalize your brochure.

Available titles include:

The CARES Act: Good News When We Need It Most (new)Caring for Your Four-Legged Loved Ones (pet trusts)Eleven Things to Remember (wills and bequests)An Estate Planning Quiz (estate planning)Making Retirement Accounts Less Taxing (retirement plan giving)Questions & Answers About Gift Annuities (available with or without recommended ACGA rates)Questions & Answers About Retirement Plan GivingQuestions & Answers About Wills and Bequests

We continue to add titles to our online platform. Check our website at www.SHARPEnet.com/personalized-publications for the most current options. Year-End titles will be available soon. For more information, visit the website or contact us at 901.680.5300 or info@SHARPEnet.com.

Gift Planning NEWSLETTERSWith more than 55 years of

working with nonprofits of all sizes and missions, Sharpe Group studies confirm those who are your most likely prospects for planned gifts are from generations who still prefer print communications.

According to Pew Research, about one-third of Americans age 65 and older reportedly do not use the internet at all. Even more important, few organizations have email addresses on file for more than 25% of their donors in this age group. This means that perhaps the majority of the prime group who will leave bequests and make other planned gifts over the coming decade won’t be reached using a digital strategy alone.

One of the most effective ways to reach this group is with a printed newsletter. Sharpe Group Gift Planning Newsletters offer a balanced blend of educational topics, information about your mission and donor stories. Our planned giving writers craft compelling articles so your newsletter will always reflect the uniqueness of your organization with customized content and design.